XRP: Ripple Leader Says Blockchain Is Redefining Banks

The conversation around XRP and the broader blockchain ecosystem is evolving rapidly, and Ripple continues to play a central role. Recently, Ripple board member Asheesh Birla pointed out that blockchain technology is actively dismantling traditional banking as we know it. His commentary adds momentum to the growing recognition of how digital assets like XRP are reshaping financial services.

Birla likened blockchain’s impact on financial institutions to how the internet fragmented traditional media. He made a compelling comparison between the decline of newspapers and what’s now happening to legacy banks. Newspapers once delivered news, classifieds, job ads, and opinion pieces through a single platform. Over time, that model split into specialized platforms—Craigslist replaced classifieds, Pinterest took over recipes, and Substack became the go-to for opinion writing. Birla argues a similar trend is now hitting banking, and XRP is in the thick of it.

The decentralization process enabled by blockchain isn’t just about transferring money quickly. It’s about breaking up the multifaceted offerings of traditional banks. Each individual function—from payments and savings to lending and currency exchange—is being isolated and optimized by separate entities in the blockchain space. XRP, as Ripple’s native digital asset, is central to several of these financial functions, particularly enabling real-time cross-border settlements.

Birla’s remarks came in alignment with views from Bloomberg Opinion columnist Matt Levine, who has emphasized that stablecoins are forming a new kind of narrow banking. In traditional models, banks use customer deposits to lend money and make profits. But with stablecoins, especially within ecosystems like Ripple’s, there’s a growing tendency to hold actual U.S. dollars or equivalents in reserve. This reduces risk while streamlining accessibility. Ripple’s own USD-backed stablecoin, Ripple USD (RLUSD), recently crossed the $300 million mark in market capitalization—another sign of blockchain’s rise in mainstream financial infrastructure.

This changing landscape is especially relevant now as digital finance tools become more specific, accessible, and efficient. Unlike traditional banks that bundle an array of services under a single roof, blockchain-based networks tend to focus on fine-tuning singular functions. Ripple, through its use of XRP and services like On-Demand Liquidity (ODL), is a clear example of this targeted innovation. The company isn’t trying to replace banks entirely but is effectively redefining their roles in a decentralized financial world.

What makes Ripple’s approach unique is how it integrates with existing financial systems while offering an alternative that’s faster, cheaper, and more transparent. XRP plays a critical part in bridging fiat and digital currencies for enterprises and payment providers. As more regions and regulatory bodies begin to embrace the concept of digital currencies and blockchain efficiencies, Ripple’s framework could become a foundational part of tomorrow’s banking model.

Another key takeaway from this evolution is the power of specialization. Financial services built on blockchain are no longer required to cover everything under one roof. Instead, lean platforms are delivering more effective tools in payments, custody services, compliance, and beyond. Ripple’s strategy of building an ecosystem around XRP rather than a catch-all solution is paying off in this fragmented yet interconnected financial universe.

Related: Expert Advice: Sell XRP If You’re Confused

As blockchain continues to gain traction, it’s evident that the traditional banking model is being unraveled and pieced back together with new, decentralized building blocks. Institutions that fail to adapt to these changes may find themselves irrelevant or displaced in the years ahead. Ripple and XRP are not only navigating this shift—they’re helping to shape what’s next for global finance.